Rogers, Connecticut -- Rogers Corp. had first quarter 2009 revenues of $65.5 million compare to Q1 2008 revenues of $98.0 million, the company announced 31 March.
"The global economic slowdown had a dramatic effect on our business in the first quarter driving our sales down by 33.2 percent quarter-over-quarter," said Robert Wachob, Rogers' president and ceo, in the results statement.
Wachob said the sales decline was the result of "substantial end market declines and inventory take-downs in most markets, especially cell phones, hard disk drives and most consumer products." Rogers "responded by aggressively lowering our cost structure, implementing reduced work weeks in our factories, and intensifying our operational improvement efforts," he added.
In its High Performance Foams business, which makes both urethane and silicone foams, Rogers had sales of $17.2 million for Q1 2009, down about 41.4 percent compared to Q1 2008 sales of $29.3 million.
Rogers attributed this to "weakened consumer electronics spending and customer supply chain inventory issues," and said this occurred across all end markets for HP foams for Q1. "Particularly hard hit were cell phone applications," Rogers commented, saying manufacturers' excess inventory meant "little to no business from most customers in this market segment during the period."
Now, the company continued, it is, "seeing a modest recovery," in the cell phone market. Rogers' factories are increasing production from the significantly shortened schedules that were in place for the quarter. In China, where there was "essentially no production in the first quarter," workers are being rehired as production resumes, the company said.
In its 50-percent owned joint ventures, Q1 sales of $10.6 million were almost 60 percent below the $26.2 million for Q1 2008, which Rogers said resulted from various factors: a decline in consumer electronics; excess inventory throughout the supply chain; and a slowdown in the hard disk drive and cell phone markets.
Looking ahead, Wachob said, "I believe the worst is behind us and that we will make steady progress during the rest of the year:" he expects sales to be $68 to $73 million for the second quarter.